Over the course of the year, prices in Spain have risen unabated, especially since March. According to the industry association Fepex, this will have a significant impact on the vegetable season currently underway as well as the upcoming fruit season. This problem impacts everyone and every production process of O + G companies, beginning with planting material, fertilizers, energy, water, plastics, and packaging, as well as building materials for the construction or renovation of greenhouses, transportation, etc.
In Almeria last season, the increase in costs varied from 5% to 7%, depending on the culture, as explained at the Coexphal meeting on October 1st. Murcia’s broccoli sector is expecting a 25% increase in costs this season, according to Juan Manuel Ruiz, President of Proexport’s Broccoli and Cauliflower Sector. Due to this uncertainty, long-term planning is very difficult.
The investments already planned for the Hortofruticola Paloma Group have been put on hold, according to Ana Hernández, Head of R + D + I. Plastic and metals, such as steel and iron, which are used in greenhouse construction and renovation, have risen by 50% this year, delaying or halting renovations and investments.
Furthermore, the increased wage costs as a result of the renewed increase in the interprofessional minimum wage affect the production activity of a large segment of the Spanish sector, including O + G, according to FEPEX. As a result, production costs rise, which are extremely difficult to pass on to the consumer because the sector has a weak bargaining position. Source: FEPEX
